Retail prices of petrol and diesel have been hiked for four times since the last month, with the latest increase of Rs 2.6 and Rs 2.7 per litre respectively announced the previous week. On June 6, however, prices of petrol and diesel have remained largely unchanged, with the exception of a few paise. So far, prices have increased by Rs 7.5-8 since the start of the US-Iran war as global oil prices have soared due to ongoing conflict in the Middle East that has impacted oil marketing companies significantly.
In Delhi, petrol is priced at Rs 102.12 per litre, while diesel costs Rs 95.20 per litre. State-owned oil firms are incurring losses Rs 1,600-1,700 crore per day, over Rs 1 lakh crore in 10 weeks amid the crisis. Indian consumers are facing a sharp rise in fuel expenses once again, with petrol prices in several cities are set to touch the Rs 114-per-litre, revealing the widening gap in fuel costs across states.
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Petrol prices on June 6
- Petrol price in Delhi : Rs 102.12/litre
- Petrol price in Kolkata : Rs 113.51/litre
- Petrol price in Mumbai : Rs 112.21/litre
- Petrol price in Chennai : Rs 108.01/litre
- Petrol price in Hyderabad: Rs 115.73/litre
- Petrol price in Bengaluru: Rs 110.89/litre
Diesel prices on June 6
- Diesel price in Delhi : Rs 95.20/litre
- Diesel price in Kolkata : Rs 99.82/litre
- Diesel price in Mumbai : Rs 97.83litre
- Diesel price in Chennai: Rs 99.66/litre
- Diesel price in Hyderabad : 103.82/litre
- Diesel price in Bengaluru: 98.80/litre
Global Oil Prices
Oil prices fell on Friday as traders gained confidence that renewed conflict between the U.S. and Iran was growing less likely. Brent crude futures settled at $93.09 a barrel, down $1.94 or 2.04%. The previous session, Brent settled 2.84% lower. US West Texas Intermediate crude finished at $90.54 a barrel, down $2.50, or 2.69%, following a 3.1% loss on Thursday. Both contracts still looked set to post their first weekly gains in three weeks, with Brent up 1.18% and WTI around 3.64%.
The contracts rose earlier in the week after fighting flared in the Middle East as US-Iran war peace talks dragged on while traffic in the Strait of Hormuz, where a fifth of the world's oil passes, remained limited. However, Brent's gains have been capped by oil inventories lasting longer than expected, rerouted exports and falling demand, according to news agency Reuters.
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What Drives Petrol and Diesel Prices?
Fuel prices in India depend on several factors, with global crude oil prices being the most significant as crude is the primary raw material used to produce petrol and diesel. The rupee–dollar exchange rate also influences fuel prices since India imports a large portion of its crude oil requirements. Additionally, central excise duty and state-level VAT significantly affect the final retail price of petrol and diesel, which is why rates differ across cities.
Are Petrol And Diesel Prices Revised Daily By Oil Companies?
State-run oil marketing companies (OMCs) such as Indian Oil, Bharat Petroleum and Hindustan Petroleum have the authority to revise petrol and diesel prices every day under the country's dynamic fuel pricing system. However, in practice, retail fuel prices do not necessarily change every day. The changes depend on both domestic and global triggers impacting the commodity.
Prices are often kept unchanged for extended periods despite movements in global crude oil prices, exchange rates or product prices. When market conditions and policy considerations permit, OMCs may adjust prices, but daily revision does not automatically mean daily price changes. Hence, to be clear, fuel prices are reviewed daily, but they are not always changed daily.
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